By a News Reporter-Staff News Editor at Journal of Technology -- Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of information technology, consulting, and business process outsourcing services, announced its second quarter 2014 financial results.
Highlights - Second Quarter 2014
-- Second quarter revenue of $2.52 billion was up 16.5% from the year-ago
period and up 3.9% sequentially.
-- GAAP diluted EPS was $0.61, up from $0.49 in the year-ago period.
-- Non-GAAP diluted EPS was $0.66, up from $0.58 in the year-ago period.
-- Net headcount addition for the quarter was approximately 8,800.
Revenue for the second quarter of 2014 rose to $2.52 billion, up 16.5% from $2.16 billion in the second quarter of 2013. GAAP net income was $371.9 million, or $0.61 per diluted share, compared to $300.4 million, or $0.49 per diluted share, in the second quarter of 2013. Non-GAAP diluted earnings per share was $0.66 compared to $0.58 in the second quarter of 2013. GAAP operating margin for the quarter was 19.4%. Non-GAAP operating margin was 21.0%, higher than the Company's target range of 19-20%. Reconciliations of non-GAAP financial measures to GAAP operating results and diluted EPS are included at the end of this release.
"Due to weakness at certain clients and longer than anticipated sales cycles for certain large integrated deals, we are adopting a more conservative stance for the remainder of the year and revising our 2014 revenue guidance to growth of at least 14% over the prior year, while maintaining our full year non-GAAP EPS guidance of $2.54," said Francisco D'Souza, Chief Executive Officer of Cognizant. "We continue to believe that we have the right strategy and portfolio of services to deliver long-term industry leading growth and also meet the ever changing demands of the market."
"We are pleased to announce three transformational engagements for our clients totaling $3.5 billion in contract value, including a letter of intent with Health Net, Inc., a leading California-based managed care organization. The Health Net engagement is a seven year deal, and following contract finalization and applicable regulatory approval, is expected to represent approximately $2.7 billion in total contract value, the largest in our history," said Gordon Coburn, President. "We expect these three clients to generate at least $200 million in incremental revenue in 2015. These engagements are illustrative of the success of our strategy of re-investing in our business to meet our clients' dual mandate of 'running better' to drive operational efficiency and 'running different' to drive growth and innovation."
2014 Outlook - Third Quarter and Full Year
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